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American Focus > Blog > Economy > China’s economy grows 5.4% in first quarter
Economy

China’s economy grows 5.4% in first quarter

Last updated: April 15, 2025 7:52 pm
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China’s economy grows 5.4% in first quarter
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China’s economy continues to face challenges as it navigates through the ongoing trade war with the United States. According to official data, China’s GDP expanded by 5.4 per cent in the first quarter of this year, driven by a surge in exports as producers rushed to beat higher tariffs imposed by US President Donald Trump.

This growth rate, which is in line with China’s fourth-quarter performance, has exceeded Beijing’s full-year growth target for 2025. Despite the positive numbers, analysts are wary of the impact of the trade war on China’s economic outlook. Private-sector economists, such as Morgan Stanley, have revised their GDP growth forecast for China from 4.5 per cent to 4.2 per cent for this year.

The trade war has seen the US impose additional tariffs totaling 145 per cent on Chinese goods, prompting retaliatory measures from China. This tit-for-tat escalation has raised concerns about a potential decoupling of the world’s two largest economies.

In response to the trade tensions, Beijing has pledged to increase stimulus measures, including setting a record budget deficit target for the central government. However, the uncertainty surrounding the trade war has led to a cautious approach from businesses and analysts alike.

Despite the challenging economic environment, China remains a key player in the global economy. With its strong manufacturing base and growing consumer market, the country is poised to weather the storm of the trade war. Stay informed about the latest developments in the Chinese economy by signing up for updates delivered directly to your inbox.

For more information and analysis on China’s economic performance and the impact of the trade war, subscribe to the Chinese economy myFT Digest. Stay ahead of the curve and make informed decisions in this rapidly changing economic landscape.

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